Best Buy Co Inc Dossier - Source-backed chat

Best Buy Co Inc

BBYNYSE

SectorConsumer Discretionary

IndustrySpecialty Retail

Beta (adjusted)1.19

Intrinsic Value $68.97median of 6 methods · middle span $64-$87based on filings through 1 Aug 2026

Market Price $88.24Price as of 30 Sep 2026

OvervaluedIntrinsic value is 22% below the market price

−50% · IV below pricenear fair value ±15%IV above price · +50%

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Market Cap $18.5B

Enterprise Value $17.4B

Shares Outstanding 211.7M diluted

Moat Rating Wide

Next Earnings Date24 Nov 2026

Last ex-dividend18 Jun 2026

All prices and values are periodic snapshots, not live quotes. Source dates are shown for reference.

Thesis

Street consensus, scenarios, merits, risks, and invalidation triggers

AI-assisted

Thesis Summary

Best Buy entered the second half of FY27 with materially improved operating momentum: Q2 enterprise comparable sales rose 4.1%, adjusted diluted EPS increased to $1.47, and management raised its full-year comparable-sales, operating-margin, and adjusted-EPS guidance. Marketplace and Best Buy Ads are supporting gross-margin performance, while computing, home theater, and emerging categories are driving demand. A Hold remains appropriate because international comparable sales declined, product-margin pressure persists.

This section is the 12-month view: analyst targets and the probability-weighted scenarios built from them. The intrinsic value at the top of this page answers a different question: what the business is worth today.

Street view · analyst 12-month targets20 analysts · as of 18 Aug 2026

Low · most bearish analyst$62.00

Mean target$82.35

High · most bullish analyst$95.00

Our research · scenarios, merits, risks, and invalidation triggersResearch as of 2 Sep 2026

Scenarios · 12-month scenario targetsAnchored at research date

Bear CaseDownside scenario

Q3 comparable-sales growth falls below management's 1.0% guidance floor, product-margin pressure overwhelms Marketplace and advertising benefits, and the adjusted operating-income rate falls below the 4.4% full-year guidance floor. International weakness or softer discretionary-technology demand would increase downside risk.

Base CaseCentral scenario

Best Buy delivers within its raised FY27 ranges of 1.9% to 3.0% comparable-sales growth, a 4.4% to 4.5% adjusted operating-income rate, and adjusted diluted EPS of $6.70 to $6.90. Marketplace and advertising gains partly offset product-margin and operating-expense pressure.

Bull CaseUpside scenario

Demand remains above the raised outlook, Q3 comparable sales exceed management's 3.0% guidance ceiling, and Marketplace and Best Buy Ads continue to offset product-margin pressure. Sustained computing, home-theater, services, and emerging-category growth would support results above the current FY27 ranges.

Key Investment Merits

Q2 FY27 enterprise comparable sales increased 4.1%, while adjusted diluted EPS rose 15% to $1.47.
Management raised FY27 guidance to 1.9%–3.0% comparable-sales growth, a 4.4%–4.5% adjusted operating-income rate, and adjusted diluted EPS of $6.70–$6.90.
Marketplace and Best Buy Ads supported domestic gross-margin expansion, while domestic comparable online sales increased 5.1%.

Key Investment Risks

International comparable sales declined 1.8% in Q2 FY27, contrasting with domestic comparable-sales growth of 4.5%.
Lower product-margin rates continued to offset part of the gross-profit benefit from Marketplace and Best Buy Ads.
Results remain exposed to discretionary consumer demand, technology product cycles, competition, tariffs, vendor availability, and macroeconomic conditions.

All scenarios are estimates and subject to change. Past performance is not indicative of future results.

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Explore this dossier

ValuationIntrinsic value, the six-method breakdown, peer medians, and your assumptions sandbox.Financial SnapshotRevenue, profitability, returns, balance sheet, dividends, and the filing-level detail.Qualitative AnalysisBusiness overview, strategic initiatives, and mergers, acquisitions & partnerships.Outlook & Key DatesForward estimates, reporting calendar, and the monitoring framework.